It seems that the recovery of the property market is going from strength to strength, if the latest figures are anything to go by.
In October, the number of housing loans approved by British lenders hit its highest level in almost six years, the Bank of England revealed late last week.
Local banks approved 67,701 loan applications for housing purchases in the tenth month of the year against 66,891 in September. The number of mortgage approvals was the highest since February 2008, although it was still below the average number of 90,000 seen before the financial turmoil.
The release of figures coincide with the latest housing data report from Nationwide Building Society, which revealed a 0.6% monthly lift in house prices in November, bringing the annual growth rate to its highest level since July 2010, to 6.5%.
Recent developments on the local residential property market have sparked fears it is overheating. In attempt to avert a new housing bubble, the central bank said it would curtail the government’s Funding for Lending Scheme (FLS), ceasing incentives for banks to provide mortgages to focus exclusively on business loans from 2014.
Britain’s housing market has been gaining momentum over the last year after suffering a 20% dip in prices in cash terms since the start of the crisis. The improvement has been fuelled by economic recovery and the launch of the second stage of the government’s Help to Buy scheme, intended to help borrowers with low deposits access a mortgage more easily. Since the start of the second phase of the scheme, as many as 2,000 homebuyers have received mortgages, Prime Minister David Cameron stated.
There’s certainly an element of increasing confidence in the air at the moment… are you feeling it?